Preapproved Auto Loans near Elmhurst

Published on February 21st, 2019

When a majority of Americans don’t even have $400 in a Savings account, it’s not surprising that most people have to finance their vehicle purchases with auto loans.  A smart way to secure your financing for your purchase is to get yourself preapproved for an auto loan with a credit union near Elmhurst.

Solidifying Your Terms

One of the best reasons to secure financing before purchasing your vehicle, is that it takes some of the variables out of the purchase equation.  There are enough moving parts involved in the purchase transaction alone when you’re looking at the purchase price, trade-in allowance or deficit, down payment, warranty coverage, GAP, tax, title, and registration fees.  You’re much better off securing your loan so that you know how much you can afford going into the car negotiation.  The car salesmen and their financing staff are trained to get you to purchase the vehicle and they aren’t necessarily looking out at what’s best for you when it comes to the sales price of the vehicle or the loan contract that they get you to sign off on because you want that car.

When you know the amount you can afford at the term and rate that you qualify for, you’re going to know what your monthly payment is going to be.  When you get your financing through a dealer, their prime concern is to get to a payment that you can afford.  What often happens, is that the terms in dealer financed vehicle loans get extended commonly beyond 72 months.  By extending the term, the dealer is able to bump up the rate and still keep your payment within your allowable range.  The problem that this causes is that you’re paying a higher rate of interest, for a longer period than you had originally intended.

This causes even more problems down the road if you don’t keep the car until you’ve paid the loan off.  By extending the term, you’re actually increasing the depreciation gap and if you trade that vehicle in for your next car purchase, you’re going to owe more on the vehicle than it’s worth and that amount will get added to your next loan.  So, in essence, you’re paying interest on your original loan twice!

Leyden Credit Union

At Leyden Credit Union we offer auto loans near Elmhurst with 100% financing.  While we do offer 72-month financing, it’s in your best interest to keep the term as low as you can manage.  Rates are dependent upon term, credit score and age of vehicle with our best rates at 1.9% for superior credit and terms of 36 months.

If you’re looking to save some money on a car that you’ve already financed elsewhere, Leyden Credit Union has a refinance program that will drop your rate by 1% down to a floor of 1.9% subject to credit approval and restrictions apply.


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